Zirconium alloy cladding tube specimens were irradiated at 380℃ up to a fast neutron fluence of 7.5 × 1024 n/m² in a research reactor to investigate the effect of neutron irradiation on hydride reorientation and mechanical property degradation. Cool-down tests from 400℃ to 200℃ under 150 MPa tensile hoop stress were performed. These tests indicate that the irradiated specimens generated a smaller radial hydride fraction than did the unirradiated specimens and that higher hydrogen content generated a smaller radial hydride fraction. The irradiated specimens of 500 ppm-H showed smaller ultimate tensile strength and plastic strain than those characteristics of the 250 ppm-H specimens. This mechanical property degradation caused by neutron irradiation can be explained by tensile hoop stress-induced microcrack formation on the hydrides in the irradiation-damaged matrix and subsequent microcrack propagation along the hydrides and/or through the matrix.